Foreign Property News | Posted by Aye Myat Thu
The trade war is driving rich Chinese people to drop their plans to emigrate to the US and seek alternative destinations in Europe, particularly the UK, the latest data suggests.
Applications for so-called tier-1 investor visas to the UK by ultra-wealthy Chinese jumped by more than half to 83 — including 10 from Hong Kong — in the first quarter of 2019 from 54 in the preceding three months, according to Growthdeck.
That is the highest number since the fourth quarter of 2014, according to the London-based investment services firm.
Under UK rules, a foreign investor can obtain the “golden visas” for themselves and their dependents by investing £2 million (S$3.41 million) in British companies.
The visa gives them the right to stay in the UK for three years and four months, with the option of extending for another two years and of applying as for citizenship afterwards.
Mr Samuel Hu, head of overseas investors at Growthdeck, said the escalation in the trade war between the US and China, a weak British currency, and a growing desire among wealthy Chinese to diversify their investment portfolios lie behind the spike in applications to relocate to the UK. Meanwhile, the EB-5 visa scheme, the US’ equivalent of the UK programme, has seen falling numbers of applicants.
Data from the US State Department shows visas issued to China-born applicants last year under EB-5 dropped by almost half from the peak in 2014.
The trade war, and waiting times of up to 16 years for some applicants, are the major reasons for the waning interest, analysts said.
“For Chinese clients, fears about not being welcomed because of the trade war are making them look more closely at the realities of the EB-5 programme,” said Mr David Lesperance, managing partner at Lesperance & Associates.
“The UK is a favoured choice because of the great educational opportunities it offers, excellent investment opportunities, and low taxes.” The minimum investment to qualify for an EB-5 visa will rise from US$500,000 (S$690,345) to US$900,000 from November this year.
Ref: Property Report
